Thanks for your quick response. I hope you don't mind just a few more questions...

Specifically, when you stated:

"You are correct that your wife may contribute $2K to a deductible traditional IRA for herself"

Does my wife's contribution to her Traditional IRA have to come from her earnings (she has none!) or can it come from my earnings?

Lastly... assuming an AGI of $105,000 (married filing jointly), what I'd like to do is contribute the deductible $2k into my wife's Traditional IRA and also set up a Roth in my name and contribute to that. Is this feasible? What is the maximum I'd be able to contribute to the Roth each year?